Order Date – 10 January 2022

Parties: Tennco Exhaust India Private Limited Vs C.C.E. & S.T.-Vadodara-II

Facts –

• The Appellant, Tennco Exhaust India Private Limited is making certain products for M/s General Motors (India) Private Limited. For manufacture of those products, they require tools and moulds.
• The appellants have claimed exemption under Notification 67/95-CE in respect of invoices issued as the said moulds and tools were used within the factory by the appellant for manufacture of excisable goods for General Motors (India) Private Limited. 
• It was alleged that the appellants were required to pay duty on these deemed clearances of goods within the factory of manufacture.  Accordingly, Central Excise duty, interest and penalty were imposed.
• Further, it was alleged that two of the invoices were in respect of goods, namely, Tools and Moulds cleared by the appellant to their factory located in Pune.

Issue – 

• Whether the appellant is eligible for exemption under Notification 67/95-CE?

Order –

• The Tribunal held that Notification No.67/95-CE suggests that as long as the goods are not cleared physically form the factory of production and the same are used for manufacture of excisable goods, the benefit of Notification cannot be denied. Thus, so far as goods used within the factory of production for manufacture of excisable goods are concerned, duty cannot be demanded. The duty on these goods is set aside.
• As regard, the goods cleared from the factory to the Pune Unit of the appellant, no data of the Pune Unit has been submitted, and thus demand in respect of these goods cleared from factory to the Pune Unit is confirmed. 
• The Tribunal held that Notification 67/95-CE is very straight forward and leave no scope for doubt. In these circumstances, the motive of avoiding duty cannot be denied. Thus, it was held that the extended period has been rightly invoked in respect of the goods cleared from the factory to the Pune Unit.
• The appeal is partly allowed.